Polynt-Reichhold announces maleic project; phthalic plans by year-end

MOSCOW (MRC) -- Polynt-Reichhold has decided to build a 50,000 metric tons/year maleic anhydride plant at its Morris, Illinois, site, said Chemweek.

The move is part of the company’s Strategic Integration Initiative, which was announced in 2019. The company says it is still considering its options for production of another key feedstock, phthalic anhydride, and it expects to make a decision by the end of 2020.

Polynt-Reichhold currently produces both maleic and phthalic anhydride in Italy. The company has 36,000 metric tons/year of maleic anhydride capacity based on benzene at Scanzorosciate, and 65,000 metric tons/year of capacity based on n-butane at Ravenna, according to data from IHS Markit. The company has 30,000 metric tons/year of phthalic anhydride capacity based on ortho-xylene at San Giovanni Valdarno, and 80,000 metric tons/year of capacity at Scanzorosciate.

"For maleic anhydride, we evaluated options for purchasing an existing plant, but this proved to not be feasible,” says Rosario Valido, president and CEO. “Therefore, we decided to go ahead and build our own maleic anhydride plant."

Polynt-Reichhold says its options for phthalic anhydride are integrating with existing operations or construction of a greenfield plant, and a decision is expected by year-end. “An investment in phthalic anhydride will strengthen our competitive position in the Americas while leveraging our proprietary technologies and deep experience operating intermediates facilities in Europe and Asia," notes Valido.

The company owns all of the technology and catalyst manufacturing necessary for the production of phthalic anhydride. Global capacity for maleic anhydride totaled 3.6 million metric tons/year in 2019. The largest producer was Huntsman, with 208,000 metric tons/year of capacity.

Global capacity for phthalic anhydride totaled 6.3 million metric tons/year in 2019. The largest producer was UPC, with 750,000 metric tons/year of capacity. A producer of intermediates, coating and composite resins, thermoset compounds, gelcoats, and niche specialties, Polynt-Reichhold was formed in May 2017 by the merger of Polynt and Reichhold.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 721,290 tonnes in the first four month of 2020, up by 4% year on year. Low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) shipments grew partially because of the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.
MRC

MOSCOW (MRC) -- 3M announced today that it has partnered with Massachusetts Institute of Technology (MIT) researchers to develop a rapid diagnostic test for COVID-19, said Chemweek.

The goal is a new, highly accurate, mass-produced low-cost diagnostic device that delivers results in minutes, the company adds. The test would detect viral antigens and deliver highly accurate results within minutes via a paper-based device. The test could be administered at the point-of-care and would not need to be sent to labs.

The effort draws on 3M’s expertise in biomaterials and bioprocessing and global medical device manufacturing. The 3M team is led by scientists and manufacturing and regulatory experts from its corporate research laboratories and health care business group. The research team at MIT is led by Professor Hadley Sikes at the Institute’s Department of Chemical Engineering. The Sikes lab specializes in the creation and development of molecular technologies to improve the performance of rapid, cellulose-based protein tests.

"We are excited to collaborate with Professor Hadley Sikes and the team at MIT. Our approach is ambitious, but our collective expertise can make a difference for people around the world, so we owe it to ourselves and society to give it our best effort,” says John Banovetz, 3M Senior Vice President for Innovation and Stewardship and Chief Technology Officer.

The U.S. National Institute of Health (NIH) selected the rapid COVID-19 test for accelerated development and commercialization support. The test is in the Rapid Acceleration of Diagnostics Tech (RADx Tech) program, an aggressively-paced COVID-19 diagnostics initiative from the NIH’s National Institute of Biomedical Imaging and Bioengineering. RADx Tech’s phased innovation funnel is initially supporting a four-week period of intense research to demonstrate the test concept works and can be commercialized on a large scale. The project received $500,000 in validation funding from RADx Tech and is eligible for further investment in later stages of the development funnel.

“There is a pressing need for a highly scalable rapid test,” Sikes said. “We are working with our colleagues at 3M to overcome the challenges to move this research from lab to impact, and find an innovative path forward to manufacture it at scale. Joining forces with 3M and the NIH has greatly enhanced our collective efforts toward swift detection of the virus, and a potential tool to help mitigate and contain this public health crisis."

The teams at 3M and MIT believe a diagnostic test can be deployed once validated. Manufacturing equipment can be scaled to produce millions of units per day.

As MRC informed earlier, SIBUR and 3M have signed an agreement to cooperate in product development and polymer recycling at SIBUR’s PolyLab. Thanks to their durability, strength, eco-friendliness and other advantages, such polymers as polyethylene and polypropylene are some of the most widely used synthetic materials, popular with the construction, utilities, automotive, healthcare, food and other industries.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 595,170 tonnes in the first five month of 2020, up by 10% year on year. Deliveries of all ethylene polymers, except for linear low density polyethylene (LLDPE), rose partially because of an increase in capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market was 457,930 tonnes in January-May 2020 (calculated by the formula production minus export plus import). Deliveris of exclusively PP random copolymer increased.
MRC

MOSCOW (MRC) - Prices of high density polyethylene (HDPE) have been going down over the last nine months in Russia due to excess supply. Situation improved in July; some grades of HDPE prices began to rise gradually, according to ICIS-MRC Price Report.

Russian HDPE prices began to decrease in October last year mostly because of a significant surge in imports. The surplus had significantly affected PE prices for nine consecutive months until June, when HDPE prices fell to the level of 2014. But situation began to change in July also because of a significant increase in the cost of polyethylene in foreign markets. The black pipe grade HDPE showed the greatest price increase.

The devaluation of the rouble and a serious decrease in price in the Russian market led to a significant drop in HDPE imports. So, external deliveries of polyethylene decreased by a third in Q2 compared to the average in 2019 and did not exceed 21,000 tonnes on average per month, while in June, the import indicator fell below 19,000 tonnes.
Prices have been stable since May in the markets of Europe, Asia and Turkey; HDPE prices increased by USD100-220/tonne, depending on the region.

Depreciation of the rouble against the dollar in July made exports even more attractive to Russian producers.
Some producers increased export sales in July. The reduction in imports, the growth in exports and the seasonal increase in demand in July made it possible to balance the Russian market for many HDPE grades, and there was even a shortage for some positions.

The tightest supply was felt in the pipe HDPE segment, some Russian producers have reduced the supply of polyethylene to the domestic market in favour of export. There were also problems with the purchase of black PE100 in foreign markets.

Russian black PE100 prices increased to Rb85,500/tonne CPT Moscow, including VAT and above. Supply of HDPE for extrusion blow moulding (ЕВМ) of large containers has been tight since the second half of June. There were interruptions in supplies from domestic manufacturers, and imports have also declined.

Prices of imported analogues reached Rb73,000/tonne CPT Moscow, including VAT. The HDPE film market was relatively balanced in terms of supply and demand. Last week, some sellers increased prices, although the price surge was quite modest and amounted to about Rb1,000/tonne. But taking into account the export alternative, producers still hope in the near future to achieve a more noticeable increase in prices.
MRC

MOSCOW (MRC) -- Celanese Corporation, a global specialty materials company, has increased July list and off-list selling prices for Vinyl Acetate Monomer (VAM) sold in China, as per the company's press release.

The price increase is effective for orders shipped on or after 8 July, 2020, or as contracts otherwise allow, and is incremental to any previously announced increases.

Thus, July VAM prices rose for the Chinese region by RMB300/mt.

As MRC reported earlier, the company last raised its VAM prices for China on 1 July, 2020, by RMB700/mt.

According to MRC's DataScope report, April EVA imports to Russia dropped by 5,85% year on year to 3,050 tonnes from 3,250 tonnes a year earlier, and overall imports of this grade of ethylene copolymer into the Russian Federation increased in January-April 2020 by 1,55% year on year to 12,540 tonnes (12,350 tonnes a year earlier).

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,700 employees worldwide and had 2019 net sales of USD6.3 billion.
MRC

MOSCOW (MRC) -- MEGlobal has announced its Asian Contract Price (ACP) for monoethylene glycol (MEG) to be shipped in August 2020, according to the company's press release.

Thus, on 13 July the company said ACP for MEG will be at USD590/MT CFR Asian main ports for arrival in August 2020, which corresponds to the level of July.

The August 2020 ACP reflects the short term supply/demand situation in the Asian market.

As MRC reported earlier, MEGlobal announced its July ACP for MEG at USD590/MT CFR Asian main ports, up by USD20/tonne from June.

MEG is one of the main feedstocks for the production of polyethylene terephthalate (PET).

According to ICIS-MRC Price report, in Russia, July formulae prices for contract customers were in the range of Rb65,000-67,500/tonne CPT Moscow, including VAT. Prices of material in the spot market remained steady last week, Russian producers continued to ship material from 20 tonnes at a price of Rb70,000-72,000/tonne CPT Moscow, including VAT.

MEGlobal is a fully integrated supplier of monoethylene glycol (MEG) and diethylene glycol (DEG), collectively known as ethylene glycol (EG).
MRC